Report No. 34 of 2015 - Performance Audit on Renewable Energy Sector in India Union Government, Ministry of New and Renewable Energy

Date on which Report Tabled:
Tue 08 Dec, 2015
Date of sending the report to Government:
Government Type:
Union Department
Sector Power & Energy


Why did we select this subject for audit? India supports around 17 per cent of the world’s population but its energy and electricity consumption is only around five per cent of the world’s consumption. Its per capita consumption of energy and electricity is less than one-third of the world average.

In order to sustain a growth rate of over eight per cent through the next two decades, India would need to grow its primary energy supply by three to four times and electricity supply by at least five to seven times of its current consumption. The country might need to import over 90 per cent of its requirement of oil and over 45 per cent of its requirement of coal.Energy shortages are currently at an average of 8.7 per cent with peak deficit at nine per cent.

Fossil fuels, though cost effective and efficient, are depleting. They pollute the environment and contribute to the greenhouse effect and global warming. Renewable Energy is environment friendly and can provide energy security and offers distributed solutions. It is derived from natural processes that are replenished constantly.

India has made voluntary commitment at the United Nations Framework Convention for Climate Change to reduce its carbon emissions intensity by 20-25 per cent by 2020 in comparison with the 2005 levels. It is also envisaged that Renewable Energy would constitute 15 per cent of the energy mix of India by 2020.

India is endowed with vast Renewable Energy (RE) potential of 8,89,508 MW. The Planning Commission in the 12th Five Year Plan document had stated that the supply from renewables is expected to increase rapidly from 24,503 MW by the end of the 11th Five Year Plan to 54,503 MW by the end of the 12th Five Year Plan, and underlined the need for investments in RE.

Considering the significance of RE as an alternative to meet the ever growing energy demand of India, we decided to take up Performance Audit of Renewable Energy Sector in India for the period 2007-14. Apart from auditing the Ministry of New and Renewable Energy and institutions under it, audit was also conducted in 24 selected States.

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